India`s warehousing and logistics absorption rebounds 64 pc in July-September
India’s warehousing and logistics sector rebounded by 64 per cent sequentially in Q3 2025 (July-September) with absorption of 9.2 million square feet, a report said on Thursday.
Mumbai contributed the highest to pan-India absorption accounting for about 47 per cent of absorption or 4.29 million sq ft, with a sharp quarter?on?quarter rise of 377 per cent and a 10 per cent increase year?on?year, said the report from workplace solutions firm Vestian.
The firm however maintained that despite this robust growth, national level absorption was 36 per cent lower compared with the record level reported in the same quarter a year earlier.
Renewed occupier demand in Mumbai’s micro?markets Bhiwandi and Panvel which together accounted for nearly 96 per cent of total absorption drove the city’s recovery, the report noted.
“After a subdued previous quarter, the warehousing and logistics sector has shown clear signs of revival in Q3 2025, with Mumbai, Kolkata, and NCR leading absorption," said Shrinivas Rao, FRICS, CEO, Vestian.
The resurgence in occupier demand across key micro-markets, coupled with renewed momentum in the E-commerce and 3PL segments, underscored the sector’s growing depth and diversification.
As occupiers focus on network optimization and grade-A assets, India’s warehousing and logistics landscape is reshaping for a stronger performance in the upcoming quarters, Rao said.
NCR followed Mumbai as the second?largest market with 1.28 million sq ft, up 83 per cent QoQ, while Chennai recorded 1.13 million square ft, its highest leasing level in seven quarters, up 151 per cent sequentially and 38 per cent YoY.
Kolkata posted its highest ever quarterly absorption at 1.26 million sq ft, up 950 per cent over the previous quarter and by 186 per cent compared to Q3 2024.
